The final exam will cover all the material from the course syllabus. The final exam will be
concept oriented but there will also be some calculation involved so bring a calculator. I
will not ask you to do proofs or long derivations. The best place to start your studying
is with the homework assignments. Solutions for the homework assignments are on the
homework page. Check the Notes page for
updates of the class lecture notes.

The exams will be closed book and closed note exam. However, I will
allow one page (double sided) of handwritten or typed notes

Topics to be covered for the Midterm

Return calculations

simple and continuously compounded returns

time aggregation

Review of random variables

Shape characteristics (mean, variance,
skewness, kurtosis)

quantiles

normal distribution

linear functions of random variables

value-at-risk using the normal distribution for
returns and continuously compounded returns